Government Cuts Cause Carers to Struggle with Personal Debt

Getting into debt is an incredibly stressful experience for anyone, but what happens when you fall behind in your payments through no fault of your own? This is the problem that many carers of loved ones are now facing due to the recent government cuts to support services in the UK. A total of £1 billion in government spending has been cut from support services alone in the past year leaving many carers in an uncomfortable financial position. Many have been forced to borrow money as a result and several have found themselves in high levels of debt due to the loss in income and the higher cost of living. So what are these cutbacks and how are they adversely affecting full-time carers in the UK?

Carers’ Allowance

Carers’ Allowance is the main benefit available to those who stay at home to care for someone. Carers’ Allowance is directly linked to the Disability Living Allowance received by those in the care of a loved one. However, DLA is now being replaced with Personal Independence Payment and the new assessment process may mean that several carers do not qualify for Carers’ Allowance despite their circumstances. One in seven carers are in currently in debt worth more than £10,000 according to recent research by Carers UK and 44% of all carers are struggling with debts as a direct result of the government cutbacks. Additionally, a recent report from the Department for Work and Pensions has stated that 10,000 fewer carers will be entitled to Carers’ Allowance by 2015 indicating that things may not improve financially for carers in the near future.

Bedroom Tax

Although the carers allowance is the main source for concern among many carers, the newly enforced bedroom tax is also having negative effects on the finances of those caring for loved ones at home. Many carers are unable to share a room with their disabled partner or need an extra room in order to get a good night’s sleep after taking care of a sick loved one. However, Carers UK has reported that the new bedroom tax does not make allowances for exceptional circumstances like these. A recent report from the charity found that one in six carers are falling behind in their rent and 75% of carers paying the bedroom tax have cut down on essentials such as food and electricity as a result of the tax.

Dissolve Debt is here to help

The stress of caring for a sick or elderly loved one can take its toll without the added financial strains caused by the recent government cutbacks. If you are a carer or you know someone who is, help is available for those struggling financially. The team at Dissolve Debt has the knowledge and experience to help you through financial difficulties and we have a wide range of products and services to help you find an appropriate debt solution. Contact us via our website or pick up the phone to speak to a member of our team.

Conditions apply. Please note that repaying debt over an extended period may increase the total amount of debt to be repaid. Transferring debts to a financial management plan will affect your ability to obtain credit in the short term. Your ability to obtain credit may also be affected in the medium to long term.